It’s now a paradox that foreign nationals can so easily secure business permits in Bali through the OSS (Online Single Submission) system.
While Bali undeniably benefits from foreign investment, the lack of regulatory oversight risks undermining local MSMEs (Micro, Small, and Medium Enterprises) that are still finding their footing.
Responding to this issue, Bali Provincial Secretary Dewa Made Indra expressed concern that some micro, small, and medium enterprises in Bali, managed by foreign nationals, may be operating without proper permits.
“It’s not allowed. In fact, if they exist in the field, they definitely don’t have permits,” said Dewa Made Indra at the Banjarasem Village Head Office, Buleleng, Wednesday (August 27).
According to him, business permits for foreign nationals in the micro, small, and medium business sector are impossible to obtain, except for medium- to high-risk investments regulated through the Online Single Submission (OSS) system.
“Foreign investment is allowed. But there are levels. When it comes to micro and small businesses, they are not allowed (to get business permits). If they exist in the field, we will help check to see if they have permits. My suspicion is that they don’t,” he explained.
There Will Be Enforcement
Dewa added that regarding the allegations of foreign nationals managing MSMEs in Bali, he and Governor Wayan Koster have prepared enforcement measures. However, Bali Provincial Government does not yet have definitive data.
“The Governor has been very proactive in handling this matter. Yes, that’s suspected (foreigners managing MSMEs). We don’t have definitive data yet,” he said.
Dewa further emphasized that the OSS application is a national system managed by the Ministry of Investment, which means regional governments have no authority to intervene.
“OSS is a national application. It cannot be managed jointly. The documents do have technical considerations from the regional governments, but the system belongs to the Ministry of Investment,” Dewa explained.
In response, the Bali Provincial Government has begun preparing regulations governing licensing, specifically for foreign nationals.
Furthermore, the Bali Provincial Government also plans to form a joint task force to crack down on rogue businesses in the province.
“This task force is cross-agency. So, there are representatives from the regional government, the police, immigration, intelligence, and the National Narcotics Agency. There are many units,” Dewa added.